What happens when you have a shareholder dispute with a Board of Directors in San Diego? What happens if an individual director is taking inappropriate actions?
The Fiduciary Duty of a Board or It’s Directors
Board disputes can and do have a substantial impact on the performance of a San Diego corporation. They distract important resources and the focus of individuals and the Board itself away from the primary focus: solving challenges and ensuring profitable business performance and transactions.
The Board of Directors and the directors as individuals have fiduciary duties and are held to a high standard of practices and actions. While the Board wields a substantial amount of power it is possible to hold them accountable when their actions are not in harmony with their fiduciary duties, or when their decisions are leading the company away from profitable business strategies.
Individual directors can be held financially accountable for their actions, and for decisions relating to the declaration of dividends or the application of the capital and resources of a corporation.
Resolving a Shareholder Dispute with a Board of Directors
Well intentioned directors can have principled disagreements. What happens when factions appear within the Board, or when an internal dispute amongst shareholders threatens to disrupt the performance of the business itself?
The Watkins Firm offers more than four decades of experience and proven skill in these matters serving San Diego corporations, Board of Directors, individual board members and shareholders. We work efficiently to resolve disputes and disagreements quickly and in a cost-effective manner. We help to protect our clients’ interests and hold the Board and its directors to the high standards and fiduciary responsibilities they carry.
The key to resolving a shareholder dispute with a Board of Directors in an efficient manner is effective negotiation and, in many cases, legal guidance on corporate governance or compliance. Your Watkins Firm attorney works to develop a thorough chronology of events and mastery of potential damages. These are the foundations of an effective, leveraged negotiation.
The Watkins Firm is able to resolve the vast majority of business disputes, including a shareholder dispute with a Board of Directors through effective, leveraged negotiation. This is the fastest and least expensive path to resolving these disputes.
The shareholders’ agreement should address situations involving disputes between a Board and shareholder(s). This often includes breach of fiduciary duty and/or unfair business practice penalties and/or a path to either forced resignation of a director or the buy-out of an interest.
In some cases, the solution may lie in a derivative lawsuit on behalf of the corporation itself. Business mediation and or arbitration may prove to be productive venues for disputes of this nature.
If you are involved in a shareholder dispute with a Board of Directors in San Diego or Southern California as either a director or a shareholder we invite you to review our podcast Episode 14 – Shareholders’ Rights and Disputes as well as the strong recommendations of our clients and contact the Watkins Firm or call for a complimentary and substantive consultation at 858-535-1511. We will develop strategies to protect your position and your financial interests, as well as your objectives for the best interests of the corporation.
